I wrote a while back about tourist destinations where your dollar went a long way. One of those countries is Iceland, which has had one of the worst collapses of any country in the world. Iceland's three biggest banks collapsed at the height of the global credit crisis, slamming the nation's economy, sending its currency tumbling and forcing it to rely on a $10 billion aid package led by the International Monetary Fund.
One by product of their terrible situation has been the closing of their three McDonald's Restaurants on October 31. Vertu blessadur to any future cravings for a Big Mac or Chicken McNuggets. McDonald's would have to raise their prices by 20% to get the margin needed on their products. That would price a Big Mac at $6.36.
Of the 120 countries that produce the McDonald's Big Mac sandwich, Switzerland and Norwary currently sell the most expensive ones, at about $5.75, while South Africa and China sell the cheapest, at $1.68 and $1.83.
The managing director of McDonalds, Magnus Ogmundsson plans to reopen the stores under a new brand name, Metro, which will use local materials and produce. This will definitely keep the cost lower and provide Icelanders with their fast food fix.
Iceland is in bad shape. The IMF estimates that Iceland's economy will shrink 8.5% this year, with consumer prices rising 11.7%, both of which would be the worst performances among the world's 33 advanced economies. Very bad news for Iceland, but good news for those foreigners who travel there. If you go, just don't expect to find McDonald's any time soon.
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